Barclays Deputy Chairman Michael Rake has ruled himself out of contention to be its new chairman, striking a blow to the UK bank as it hunts for new leadership to steer it through its interest rate-rigging scandal.

Rake, who was considered the favorite for the job, is not interested in the role, three people familiar with the matter said yesterday.

His retreat follows protests by several top shareholders who were determined that the next chairman should come from outside Barclays, according to reports.

The next Barclays chairman faces a stiff challenge. The bank was fined $450 million three weeks ago for manipulating Libor interest rates, and the scandal has unearthed deep problems in its relations with regulators, who have accused the bank of frequently being too aggressive.

The job will also attract intense scrutiny — and possibly interference — from UK authorities, who have been criticized for not doing more earlier to rein the bank in.

Rake would have been forced to give up his chairmanship roles at telecom firms BT Group and budget airline easyJet to take the job. He could not immediately be reached for comment.